"It turns out that even when a British Muslim beheads a British Christian there will always be someone willing to blame the Jew," Bennett wrote in a Facebook status, referencing the videotaped executions published by the terror group.

Economy Minister Naftali Bennett (Photo: Ido Erez)

Kerry reportedly said that that the resumption of peace talks between Israel and the Palestinians was "imperative" because the conflict is "a cause of recruitment and of street anger and agitation."

Bennett said Kerry's comment aids the group: "Terror should not be justified, terror should be fought."

"The claim that the Israeli-Palestinian conflict strengthens Daesh (the Arabic acronym for the Islamic State group) is an encouraging for global terror," Bennett said.

"I suggest we listen to Daesh and take their word: These are terrorists who want to take control of the Middle East. So you can either fight this or justify this. The choice is in the world's hands and it will also pay the price for its choice," Bennett concluded.

Communication Minister Gilad Erdan also slammed Kerry's comments, saying that "I respect Kerry and his efforts, but every time he outdoes himself in terms of his failure to understand the region and the essence of the conflicts in the Middle East."

Erdan further said that "maybe Kerry should listen to his own president before making statements that are and affront to logic and could encourage moral lows."

Kerry lands in Cairo (Photo: Reuters)

Kerry on Thursday called for a resumption of the Israel-Palestinian peace process, saying the talks were vital in the fight against extremism.

"It is imperative that we find a way to get back to the negotiations," Kerry said at a State Department ceremony marking the Muslim festival of Eid al-Adha.

We need "to find a way to create two states that can live together side by side, two peoples, with both of their aspirations being respected," Kerry added.

"I still believe that's possible, and I still believe we need to work towards it."

He said the unresolved Israel-Palestinian conflict was fueling recruitment for the Islamic State jihadist group.